2011 Mortgage Interest Rates Ending Year Near Historic Lows

The average fixed interest rates for Conventional loans are ending the year near their all-time historic lows.

The average rate for a Conventional, 30-year fixed interest rate is 4.00%. In 2010, the year ended with an average rate of 4.875%.

Our interest rates as of today:

Conventional, 30-yr Fixed: 4.00%/APR 4.264%
FHA or Federal VA, 30-yr Fixed: 4.125%/APR 4.698%
USDA (Rural Housing), 30-yr Fixed: 3.875%/APR 4.321%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Extension of the Mortgage Insurance Tax Deduction Uncertain

Numerous tax provisions, including the mortgage insurance tax deduction, will expire January 1st because Congress did not pass its annual tax extension bill before the lawmakers left town December 23rd.

The mortgage insurance tax deduction went into effect with new mortgage loans closed January 1 through December 31, 2006. Every year since then, Congress has passed the law extending the tax deduction for another year.

The law to make mortgage insurance tax deductible was to help homeowners make buying a home, with mortgage insurance in their monthly payment, more affordable. Just as mortgage interest can reduce a homeowner's tax bill to the government, the mortgage insurance tax deductibility does the same.

Stay tuned. . .

FHA Waives Flipping Rule Until End of 2012

The Federal Housing Administration (FHA) has suspended its anti-flipping rule for another year to facilitate the financing and sale of newly renovated foreclosed properties.

This extension is intended to accelerate the resale of foreclosed properties in neighborhoods struggling to overcome the possible effects of abandonment and blight.

The Department of Housing and Urban Development issued the anti-flipping rule in 2003 to protect FHA borrowers from investors who were quickly flipping properties at inflated prices.

The anti-flipping rule prohibits lenders from using FHA financing in transactions where a single-family property is being resold within 90 days of the investor purchasing the property.

For more information please contact us at 503-385-1791 or www.equityloansoregon.com.

Interest Rates as of 12/21/2011

Conventional, 30-yr Fixed: 4.25%/APR 4.573%
FHA/Federal VA, 30-yr Fixed: 4.00%/APR 5.452%
USDA, 30-yr Fixed: 4.00%/APR 4.768%

Interest Rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please cotact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Homebuyers Should Act Now, Mortgage Costs Will Rise

In 2008 Fannie Mae and Freddie Mac were placed under government control. The US Department of the Treasury in its report "Reforming America's Housing Finance Market" advocates increasing the market share of private mortgage lending companies and reducing the role of Fannie and Freddie - with the ultimate aim of winding both institutions down.

This will make it tougher for people to buy and finance homes. According to the report, "The government must also help ensure that all Americans have access to quality housing that they can afford. This does not mean our goal is for all Americans to be homeowners."

The exact changes will be hashed out in the upcoming months. However, it seems safe to assume that mortgage borrowing post-Fannie and Freddie will look something like this:

• FHA and other government-backed mortgages will be limited to the neediest segments of our society- those of low to moderate income.


• Private mortgage lenders will be taking care of the rest of us, working within the constraints of additional regulation and retaining more of the risk from the loans they originate.


• Fannie and Freddie will lower their loan limits and their market shares will decrease. Down payment and mortgage insurance requirements will increase.

Although outcomes are uncertain, it looks like financing a home in America without Fannie and Freddie will be tougher and more expensive. What it means today is that it may be smart for those who are interested in buying a home to start the process now.

Interest Rates as of 12-13-2011

Conventional, 30-yr, Fixed Rate: 4.125%/APR 4.409%
FHA/Federal VA, 30-yr, Fixed Rate: 4.00%/APR 5.512%
USDA, 30-yr, Fixed Rate: 4.125%/APR 4.681%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Zero-Down Mortgages Are Not Extinct!

One of the most misunderstood conceptions about home loans is that homebuyers will need at least a 20% down payment to qualify for a mortgage.

The truth is home loans are still available with no money down. The USDA loan is a 100% mortgage designed to make it easier for people to buy homes in rural areas. The first step is to see if the property you want to buy and you, as a buyer, are eligible for a USDA loan. The property must be your primary residence and considered rural by USDA standards. The homebuyer's income can not exceed 115% of the median income for your area.

VA (Veterans Affairs) loans require no down payment and no mortgage insurance. Those eligible include: Veterans, Active Duty Personnel, Reservists/National Guard Members and Some Surviving Spouses.

For detailed information regarding either of these loan programs, please contact us at Equity Loans, www.equityloansoregon.com.

Interest Rates as of 12/05/11

Conventional, 30-year, Fixed: 4.375%/APR 4.538%
FHA or Federal VA, 30-year, Fixed: 4.25%/APR 5.769%
USDA, 30-year, Fixed: 4.25%/APR 4.809%

Interest rates quoted are for informational purposes only. Interest rates and loan programs can change without notice. All borrowers are subject to credit and property qualifications, and therefore, your interest rate may differ.

Please contact us at 503-385-1791 or visit us at www.equityloansoregon.com for further information.

Mortgage Interest Rates Remain Stable

Mortgage rates inched up last week as investors seemed to regain some confidence in the global economy and flocked to the stock market. Normally, mortgage rates tend to rise when the stock market rebounds.

Typically, December is a good month for stocks, so rates may bump up very slightly for the month. Despite the slight increase, rates remain near record lows. And those who have not locked a low interest rate yet don't need to panic. Many mortgage experts say rates are expected to remain low well into 2012, even though they may fluctuate this month.